Friday Post
Why is Follow People'sValue the real key to success?
So after all week writing here about deals for the end, I just want to dedicate my sixth and final post and give you my "Believing Self," which I am so convinced today, especially as I look back to the things that helped me not only in real estate but in life Everything I wanted.
We all know the saying Follow the Money and on its face no real estate like real estate to show why this is true. But my approach is quite the opposite: Follow the Knowledge, Follow the People. The Money, not one-off but over time will come by itself What does it mean? It may sound strange to a real estate developer, but for me the most important thing about a person I am facing is not necessarily how much money he will give me but how much value he will provide me. And thanks to this value, together we can produce success over time. what do I mean? I will briefly discuss a case that might happen here to people who are only following the Money and not the Value.
For me big money is a means that requires proper use, for example, give it to a person who does not know how to deal with money he will lose it faster than he received it. The value of money does not rise, it has been declining over the years (for example, inflation). Money can come in all kinds of forms like inheritance, family, work, luck, the very fact that one has money does not mean that he is smart, money does not define one and that is a point that is important to note, especially if your emphasis in life is on Get the money And not to look carefully and look for how the value of the person standing in front of me can contribute to the big picture and not just the upcoming deal.
* It's time to close your eyes (metaphorically) and start guided imagination *
Ok. So you managed to find the house you always wanted to buy and more to do so at a price below the market. You already control your niche, you've got everything you need to buy assets, and you've even started making a bad profit. But then all of a sudden you start bleeding money. Something doesn't work and you can't figure out why.
After all, everything was planned to the last detail! You are reminded of what you said to yourself when you bought the property after you have already practiced all the tricks you have learned here this week.
You succeeded in closing a deal on an off-market property worth $ 200 for only $ 165 after purchase and final debt payments! The renovations will probably cost another 5-10 thousand, vacant ownership and you in a deal that has only cash you already have so you also have no financing costs; The small details cannot change the big picture. Even if you come across small surprises along the way, you will still come out with a significant profit, right? What could go wrong?
Oh how innocent you were ..
A few months later, you are no longer patting yourself when you finally get rid of the house and grit your teeth against your cost table that you have just completed. If you just had another five minutes to finish filling it at the time ...
Of course, you sold the house for $ 200, but where did all the capital go? Instead of just reducing $ 165 on the home and paying the mortgage, in addition to paying $ 10 on renovations, you estimate your maximum cost, you somehow lost money in the deal. How the hell did that happen? You start going over your expenses, line by line to see what you missed only to find out how much Satan is in the small details.
First of all, you forgot the costs of closing the deal in advance, from both directions of the deal. Thanks to the new tax levy, the costs of documents have suddenly become much higher than last year. Without noticing, they went $ 5 in cash that you had to pay.
Oh, and of course, at the last minute, a lien is pending for non-payment to the House Committee, which was approved and added to the property itself. That's how they went for another two thousand dollars that you had to pay to eliminate this problem.
In addition, thanks to a surprising and surprising re-evaluation of the District Water Risk Assessment Report, the house is suddenly in a flood zone. Your insurance costs are tripling but will be fine, aren't you?
But then the problem was discovered by the contractors. Fortunately, you added a little margin of confidence within the renovation budget, so the overall renovation cost didn't change too much… but the renovation took another two months beyond what was planned to complete the project. That's how they went for another $ 5,000 thanks to your extra maintenance costs.
Oh yeah, and what about the air conditioner the house inspector warned you he already knew more beautiful days? Of course, he was alive during the time you were stuck with the property. So instead of home insurance covering it, or alternatively, you will have the time to look into good deals for a new air conditioner, now you are with your back to the wall and have to recklessly agree to a new air conditioner that costs you $ 3.
Because a situation has been created that you have held on to the property for so long, you suddenly need massive gardening work to get rid of all the weeds that have accumulated and make the property the one that is worth displaying. And where did this broken window suddenly come from? Sure, it's those annoying boys who always walk around the area. Go ahead - another $ 1,000 that went to the trash because of maintenance work.
At this point, all you want is to get rid of all this and move on to another project. You've already stopped counting how many missed opportunities during these five months, so you're hiring a top-notch real estate agent so you can get a deal done as quickly as possible, even though the original plan was to give up an agent so you can do it. Pay the house price, but the entire service costs an additional 5%, and so without noticing you lost $ 10.
So, at the last minute, your buyer got into a liquidity problem after his lender demanded a few more valuations about the house and some more checks. You decide to dig in your small pockets again to cover the cost of closing his $ 2,000 deal just to keep the whole deal from going to waste and make sure you don't have to come up with a backup plan below the stated price.
All in all, and after it was all over, all these "little details" made your costs grow to $ 38. Although you were completely accurate about the cost of renovations and how much value you could add to your home, you still ended the deal with a net loss of $ 3.
* It's time to wake up and start following people's value *
If only there was someone who could assist you and accompany you in managing the property and the process of escorting the transaction. Someone who sits with you and makes sure you haven't forgotten to weigh in costs that you didn't even think about. And what about a tax planning lawyer to make sure you don't just have money? What a pity there was no one to connect you to one. One who sees you, feels your pain and walks you hand in hand from repairing a broken window to the happy moment that you can rest quietly after earning the right money from the deal.
And here I go into the picture. My many years of experience have led me today to help people In asset management and maintenance. Along with my dozens of satisfied customers, I try to make sure they don't repeat the same mistakes I made at the beginning. Of course, I learned from them and improved with every transaction but I wish I had someone at the beginning who helps me every step of the way. So, instead of experiencing "small" losses that will teach them towards investing, I am committed to investing in each and every one of them so that we all enjoy the success, from the first investment.
Finally:
I want to thank everyone who signed me up during the week???? I was happy to know people from Fragans and had fun being an active part of the group. On this occasion I would also like to thank the group organizers and the stage from the trust I received from them, the truth was that it was bald on some white nights and annoying mornings but it was worth it ??
1. Anyone who likes or dislikes my posts this week to say that I want to hear a comment.
Anyone who wants a copy of my free book in Hebrew will write "I am" In response, I will contact you.
2. If you have a Florida property or are familiar with other investment vehicles that need a Ninehall company, I would be happy to contact them or do a tag for anyone you think might be interested - we manage over 450 properties from Miami to Gixonail and I promise to do the best for my clients.
www.luxurypropertycare.com
3. For those of you who want to go even deeper than the posts I wrote this week, feel free to take a look at my book, which will soon be in Hebrew:
https://www.amazon.com/dp/B07MH3R68R
5. More questions? Something I missed?
Responses